SEC pursues Terraform Labs for allegedly orchestrating a ‘mega-billion dollar’ crypto scheme
Chaos in the Crypto World
It seems that Terraform Labs and its CEO have landed themselves in hot water, not just with international police but also with the Securities and Exchange Commission. Accused of running a massive crypto scheme that misled investors, the company now faces charges of securities fraud.
A Tale of Deception and Fallout
The drama unfolded as TerraUSD and Luna lost their peg to the US dollar, causing their prices to crash in May 2022. Investors were quick to point fingers, alleging that Terraform and its CEO were involved in a Ponzi scheme. The aftermath even led to the downfall of the crypto hedge fund Three Arrows Capital, while Binance faced criticism for misrepresenting TerraUSD as a safe asset.
The Great Escape and Crackdown
In a surprising turn of events, Do Kwon managed to evade investigators by leaving South Korea and landing on Interpol’s “red notice” list. The SEC’s charges mark the latest crackdown on fraud within the crypto industry, with other major players like FTX and Celsius Network also coming under scrutiny. As government agencies tighten the screws on financial laws, the future of the crypto industry remains uncertain in this wild, wild west.
